The value of retail theft will be £7.9bn in 2023, new research reveals.
The research by Thruvision, the leading provider of walk-through security technology, and Retail Economics shows shoppers account for 60% of the value of theft (£4.7bn), while employees working in distribution centres, distribution, and stores account for 40% (£3.2bn).
Colin Evans, Chief Executive of Thruvision, said: “That employee theft is a rapidly growing problem is not a surprise, but the scale of financial losses suffered by UK retailers in their distribution centres really is. What is even more surprising is that so few retailers seem to be prepared to deal with this very serious problem when proven technology solutions exist.“
Among a survey of 100 managers and directors responsible for loss prevention at large UK retailers, a net balance of a fifth (20.9%) has seen an increase in employee theft over the past year.
The step up in theft is particularly impacting food retailers, with 33.4% of food retailers are suffering an increase in theft, the research reveals.
When asked to consider the current main drivers of employee theft, the cost-of-living remains a key issue for 48.1% of loss prevention managers.
However, there are structural shifts in the labour market impacting crime, with half (50.9%) of retailers considering a reliance on temporary staff as a key driver of theft.
Retailers investing in loss prevention are focused on better tracking of inventory (69.7%) and staff training such as code of conduct (58.6%).
Richard Lim, Chief Executive of Retail Economics, said: “Retail crime adds to a backdrop of rising operating costs that have squeezed profitability in recent years. A startling 40% of theft stems from a minority of retail employees. The nature of theft becoming more organised demands a widespread and holistic approach incorporating deterrence, detection, and industry-wide collaboration.
“Proactive measures not only curb the impact of theft but also cultivate a safer environment, attracting talent and fortifying the industry. Striking a balance between fairness among honest employees and deterrence is now pivotal as structural shifts leave retailers vulnerable to disconnected workforce and supply chain complexity.”
